Naira is the national currency of Nigeria, which is controlled and issued by the Central Bank of the country, CBN. Naira was introduced to the Nigerian market many years ago, and it replaced the Nigerian pound. Nigeria is known to have the biggest popularity in the region, with more than 200 million people.
The inflation of the currency is very high, and as of today, it remains above 10 percent as of 2019. Over the last few years, especially after 2008, the Naira has gone through some tough times. The inflation in Nigeria had dramatically devalued the price of the currency for after 2008, and because of that, the government of the country decided to once again devalue the currency at a crate of 100 old nails to 1 new Naira, however, the president of the country canceled this action.
In most cases, Naira is traded in pairs with the US dollar, the United States reprints the primary trading and investing partner of the country.
Forex trading in the country is very popular, and brokers are trying to further develop this market by offering citizens of Nigeria different types of bonuses and promotions. There are many internationally well-known Forex brokers who offer their services to the citizens of the country, and with the help of these brokers, the market is developing at a very fast pace in Nigeria.
XM is one of those Forex brokers that try to support Nigerian traders to start out in the Forex market. Any Forex trader in Nigeria can register for XM no deposit bonus online try it out on their own which then gives them a perfect opportunity to get started as usually the bonus helps avoid any unnecessary risk.
Promotions are a great way for Forex trading to attract more investors, and many brokers are using this opportunity. In Nigeria, Forex trading is very legal, but the thing about it is that the local population is having a very hard time trusting anyone at this point.
It is no longer a surprise that the prices of oil falling down had a huge effect on the success of the whole country, including the national currency, Naira. This situation has increased the pressure on the country and the currency a lot.
The country is known to be the largest economy of the whole region and the success of the country mostly depends on the exports of crude oil. However, the country spends a lot of money when it comes to supplies for basic items such as food, electronics, clothing, and many others. According to official data, in 2019, Nigeria spent as much as N16 trillion, which is as much as $47 billion, on imports, while in 2018, the number was only $36.5 billion.
Because local production is not enough, the country is importing much of the food and clothing from other countries, which increases the demand for the dollar. This causes the depreciation of Nigeria’s local currency, and the trend has not changed much in 2020 either, although the government decided to put some restrictions on imports.
The Covid-19 pandemic had its own impact on the local currency as well. As many investors around the world, as well as in Naira, rushed to get as many USD as they could, the American dollar hit record highs, which is very bad news for Naira.
The fall in the international oil prices had a devastating impact on Nigeria and its economy, as well as the national currency of the country. Oil is something that Nigeria relies on a lot, according to some studies, it provides more than 60 percent of the whole government revenue. Because of the coronavirus, the prices of oil dropped a lot, and it created a very dangerous situation for the country because it is so much dependent on the price of oil.
The situation for Naira was not perfect before the virus, but it has become even worse after it. Many people are saying that the trend of devaluation will continue in the coming months and years, which can be very dangerous for the economy of the whole country.
Over the last few months, the leadership of the country has announced that they are working on new plans to make sure that the situation in the country gets better, but it not an easy thing to do.
As of today, the president of the country decided to ban imports of many things from other countries. Although this can somehow help the current situation in the country, it still is not good news. This is created other problems, for example, the ban on rice imports have made the price of it to increase significantly, and the production in the country is simply not enough to support the 200 million population of Nigeria.
Many believe that these bans can help the future of the Naira and the whole country as well, but as of now, it is creating a lot of challenges that are very problematic for the local population of the country.
Recently, Forex trading has become very popular in the country. The pandemic once again showed people that it is always a great idea to have an income that you can rely on even during the crisis. In most cases, people trade Naira in pairs with the USD, but many people still avoid trading Forex in the country.
One of the main reasons for it is that it is a very risky thing to do, and since the financial situation is not stable in the country, many people avoid participating in this market. However, FX brokers in Nigeria are working very hard to further popularize this market, and changes might be coming in the near future.
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